10/26/2026
Raise your hand if... π
you're an S-Corp owner and you picked your salary because:
π βIt seemed reasonable.β
π βThat's what I could afford.β
π βThat's what I've always paid myself.β
π βMy friend pays herself that much.β
..you're definitely not alone. And no we aren't trying to get your in trouble.
But none of those things actually document why your salary is reasonable.
Instead of finding a number that just sounds good, a Reasonable Compensation Analysis helps when understanding the rules, looking at the available data, and making a decision you can support.
And that's especially important when the IRS has specific rules around S-Corp owner compensation.
You don't need to be afraid of the rules. You just need to understand them. π